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December Declines Chill Q4 Rally And A Down '02 Stock funds rose 6.94% in Q3, and Oberweis sees "choppy' ride up in 2003.(A)

Investor's Business Daily

| January 03, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: KEN HOOVER

After two months of sizzle, the stock market fizzled in December. That put an end to another disappointing year for stock fund investors.

In fact, that was the first time shareholders got socked by three straight declining years for the S&P 500 index. The benchmark goes back to 1957, and Standard & Poor's says it back-tested the bogey's returns through 1953.

For the month, U.S. diversified stock funds lost 4.5% through Dec. 26, according to Lipper Inc. Small did less badly than large by a slight margin, and value did better than growth.

Small-cap value funds did the best, down 2.47%. Large-cap value dropped 4.06%. Small-cap growth dropped 5.53% and large-cap growth fell 5.81%.

For the month, the Dow Jones industrials rose 0.44%. But that was about the only bright spot.

The S&P 500 fell 4.98%. The Nasdaq composite dropped 7.49%

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